Basics of Organizational Behavior

ALL UG COURSES EXCEPT B.COM. (HONS.) AND B.COM. (PROGRAMME)

  • Basics of Organizational Behavior is a generic elective course in Semester IV with 4 credits.
  • The course content is based on UGCF-2022 and the National Education Policy 2020.

Compiled By

  • Compiled by the Department of Commerce, School of Open Learning.

Introduction to Organizational Behavior

  • Authored by Dr. Rakesh Gupta, Dr. Virender Kaushal, and Ms. Ritika Sharma.
  • Learning Objectives:
  • Understand the concept, features, and importance of an organization.
  • Define organizational behavior and its emergence.
  • Identify key elements, nature, and scope of organizational behavior.
  • Understand the relationship between management and organizational function.
  • Understand the challenges faced by organizations in changing times.

Introduction

  • Organizations are social systems run by people. Business organizations combine men, money, machinery, material, and management (5 M’s), with management (people) being crucial.
  • Understanding human behavior is significant for managers to effectively manage people and achieve organizational goals.
  • Managers need to understand:
  • Why people behave as they do at work.
  • What influences people’s behavior at work.

Concept of Organization

  • Mooney and Reiley: Organization is the form of human association for attaining common objectives.
  • Talcott Parsons: Organization is a social unit deliberately constructed and reconstructed to seek specific goals.
  • Wheeler: Internal organization is the structural framework of duties and responsibilities required of personnel. It's a blueprint for action to achieve company management goals.

Features of Organization

  • Group of interrelated individuals: Organizations consist of interconnected people.
  • Attainment of common goals: Organizations are formed to achieve common goals.
  • Coordination: Coordination among employees and departments facilitates goal achievement, avoiding delays and confusions.
  • Delegation of work: Organizations have a hierarchy with different responsibilities and a central authority.
  • Performance: Organizations aim to achieve goals through effective performance and human resource development.

Importance of Organization

  • Clarity at the Workplace: Clarifies business operations, fosters accountability, and establishes a clear chain of command.
  • Optimum Utilization of Resources: Efficient use of financial and human resources, preventing waste.
  • Encourages Creativity: Stimulates employee innovation through task delegation and clear job duties.
  • Brings Stability: Effective leadership, cooperation, and communication promote workplace stability.
  • Personal Growth: Supports human development, delegation, and training, enhancing individual and organizational success.

Organizational Behavior (OB)

  • Study of individual behavior in isolation, in groups, and as members of an organization.
  • Influenced by personality, perception, learning, attitude, motivation, job satisfaction, leadership, norms, values, and ethics.
  • Understanding an individual’s background, social context, and influences is essential for anticipating behavior.
  • Effective organizational culture can alter individual behavior.
  • Davis and Newstram: Organizational behavior is the study and application of knowledge about how people act within organizations.
  • K Aswathappa: OB is the study of human behavior in an organizational setting, the interface between human behavior and organization, and of the organization itself.

Emergence of Organizational Behavior

  • Traced to Max Weber and organizational research.
  • Industrial Revolution: New production methods, organizational structures, and demands.
  • Max Weber: Bureaucracy as the ideal form of organization based on rational-legal principles.
  • Scientific Management and Taylorism (1890s): Development of organizational behavior studies.
  • Human Relations Movement (1930s-1950s): Contributions from Elton Mayo, Chester Barnard, Henri Fayol, and others.
  • 1960s-1970s: Increased quantitative analysis, resource dependence, and informal organizational structure.
  • 1980s: Study of organizational change and cultural explanations.
  • Multidisciplinary Field: Aims to understand how people behave in organizational situations.

Scope of Organizational Behavior

  • Collecting and interpreting data to guide behavior.
  • Measuring organizational success by employee job performance and satisfaction.
  • Focusing on productivity, quality, and reducing absenteeism and turnover.
  • Developing a positive organizational work culture.
  • Coordinating individual and team efforts to achieve corporate goals.
  • Establishing an appropriate workplace culture and effective leadership.
  • Considering elements like benchmarking, re-engineering, job re-design, and empowerment.

Nature of Organizational Behavior

  • Independent: A multi- and interdisciplinary field.
  • Multidisciplinary: Uses knowledge from psychology, sociology, and anthropology.
  • Focused: Addresses organizational issues related to human behavior.
  • Normative Science: Prescribes socially acceptable goals.
  • Human Approach: People have a natural urge for autonomy and creative expression.
  • System Approach: Analyzes human behavior in a socio-psychological framework.

Relationship Between Management and OB

  • Management involves planning, organizing, and decision-making.
  • Organizational behavior plays a crucial role in management by affecting groups, individuals, and organizational structure.

Need of Management

  • Management is necessary for businesses and organizations for planning and decision-making.

Functions of Management

  • Planning: Systematic approach to making decisions.
  • Organizing: Defining, arranging, and coordinating work.
  • Staffing: Recruiting, training, and evaluating employees.
  • Directing: Leading, communicating, and supervising employees.
  • Controlling: Setting standards, measuring performance, and taking corrective action.

Reasons why Organizational Behavior is an Integral Part of Management

  • Understanding the relationship between an organization and its employees.
  • Motivating Employees: Using various motivational tactics according to individual needs.
  • Improving Industrial Relations: Identifying and managing problems to improve labor relations.
  • Effective Use of Human Resources: Inspiring and motivating staff members.
  • Predicting Human Behavior: Increasing productivity and profitability.

Key Elements of OB

  • People: Individuals and groups with differences that managers must address.
  • Structure: Formal and informal social systems within an organization.
  • Technology: Resources that people work with, affecting tasks and performance.
  • Environment: External factors influencing attitudes and working conditions.

Organizational Behavior in Changing Times

  • Challenges include workforce diversity, changing demographics, globalization, and the need for quality.

Challenges Faced by Management

  • Work-force Diversity: Accommodating diverse groups of people at the workplace by addressing their lifestyles, cultural moorings, family needs, and work styles.
  • Changing Demographics of Workforce: Managing increasing numbers of women, young workers, and dual-income households.
  • Changing Employee Expectations: Meeting expectations for empowerment, equality, and quality of work-life.
  • Ever Expanding Globalization: Managing a diverse global workforce and adapting management styles across different cultures.
  • Towards Improving Quality: Delivering quality products and services through Total Quality Management (TQM).